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Extension Mimeo HE, no. 312 (Apr. 1981)

Page 001

HE-312
YOUR INCOME OVER A LIFETIME
by Jean W. Bauer, Extension Specialist and
Mary Jane Johnson, Extension Associate
Your income is very important today—and will be equally important tomorrow. Only one thing is certain—your income will change over time, if only because of the effects of inflation.
If you are a part of a young family (a single adult, young adults living together with or without children, or a single parent) by considering the income of your family as a pooled resource and by planning for the changes that are likely to occur over the years, you can control your financial destiny.
This bulletin will help you look at how your income (family income) can change over your lifetime. Whatever the makeup of your family unit, it is certain that changes will occur. Children are born, grow up, and leave home and, whether you have children or not, you will grow older. If you belong to a group of single adults who are pooling resources, members of the group change over time. Your physical needs change as well as your preferences, interests, and abilities.
In a natural progression, your family will move from the young family stage to the established family stage; then, on to the retirement stage. This sequence of events is commonly referred to as the “life cycle.” Each stage of the life cycle has its special financial concerns. The source and amount of family income are of great importance regardless of the stage in the life cycle.
YOUNG FAMILIES
Sources of money income for the young family usually are jobs, pooled family income, and/or saving and investments.
JOBS
For almost all young families, wages or salaries are the primary source of money income. At the time
young families are trying to establish themselves, however, wages and salaries often are lower than they will be later in life. As a result, some young families find it difficult to make ends meet, let alone plan for the future. Is this the case in your situation? Many young people find themselves asking, "What can Ido about my situation now?" Therefore, it is beneficial to take a close look at the primary source of your money: your job or jobs.
It is fairly common for a younger, inexperienced worker to earn less than an older, well-trained worker. An apprenticed carpenter, for instance, is paid less during the training period than after acquiring skills and experience. After apprenticeship ends, the carpenter’s earnings increase.
Let’s examine for a moment what this young worker will have accomplished if he or she becomes a carpenter. He or she has invested time into learning a trade and, while learning the skills, has established a work-record which can be used later. In a sense, the trainee has proven himself or herself. Another worker may not have had the opportunity to do so—yet.
Job training is an investment—an investment in future income. Job training comes in many forms:
■ On-the-job training to improve skills;
■ Informal self-improvement through outside reading;
■ Night school or technical school;
■ Workshops and seminars; and
■ College courses.
What is your earning potential? Ask yourself some important questions about your job potential.
■ Will your current job allow you to increase your income over the years?
Cooperative Extension Work in Agriculture and Home Economics, State of Indiana, Purdue University and U. S. Department of Agriculture Cooperating. H. G. Diesslin, Director, West Lafayette, IN. Issued in furtherance of the Acts of May 8 and June 30, 1914. It is the policy of the Cooperative Extension Service of Purdue University that all persons shall have equal opportunity and access to its programs and facilities without regard to race, religion, color, sex or national origin.
• COOPERATIVE EXTENSION SERVICE • PURDUE UNIVERSITY • WEST LAFAYETTE, INDIANA •

HE-312
YOUR INCOME OVER A LIFETIME
by Jean W. Bauer, Extension Specialist and
Mary Jane Johnson, Extension Associate
Your income is very important today—and will be equally important tomorrow. Only one thing is certain—your income will change over time, if only because of the effects of inflation.
If you are a part of a young family (a single adult, young adults living together with or without children, or a single parent) by considering the income of your family as a pooled resource and by planning for the changes that are likely to occur over the years, you can control your financial destiny.
This bulletin will help you look at how your income (family income) can change over your lifetime. Whatever the makeup of your family unit, it is certain that changes will occur. Children are born, grow up, and leave home and, whether you have children or not, you will grow older. If you belong to a group of single adults who are pooling resources, members of the group change over time. Your physical needs change as well as your preferences, interests, and abilities.
In a natural progression, your family will move from the young family stage to the established family stage; then, on to the retirement stage. This sequence of events is commonly referred to as the “life cycle.” Each stage of the life cycle has its special financial concerns. The source and amount of family income are of great importance regardless of the stage in the life cycle.
YOUNG FAMILIES
Sources of money income for the young family usually are jobs, pooled family income, and/or saving and investments.
JOBS
For almost all young families, wages or salaries are the primary source of money income. At the time
young families are trying to establish themselves, however, wages and salaries often are lower than they will be later in life. As a result, some young families find it difficult to make ends meet, let alone plan for the future. Is this the case in your situation? Many young people find themselves asking, "What can Ido about my situation now?" Therefore, it is beneficial to take a close look at the primary source of your money: your job or jobs.
It is fairly common for a younger, inexperienced worker to earn less than an older, well-trained worker. An apprenticed carpenter, for instance, is paid less during the training period than after acquiring skills and experience. After apprenticeship ends, the carpenter’s earnings increase.
Let’s examine for a moment what this young worker will have accomplished if he or she becomes a carpenter. He or she has invested time into learning a trade and, while learning the skills, has established a work-record which can be used later. In a sense, the trainee has proven himself or herself. Another worker may not have had the opportunity to do so—yet.
Job training is an investment—an investment in future income. Job training comes in many forms:
■ On-the-job training to improve skills;
■ Informal self-improvement through outside reading;
■ Night school or technical school;
■ Workshops and seminars; and
■ College courses.
What is your earning potential? Ask yourself some important questions about your job potential.
■ Will your current job allow you to increase your income over the years?
Cooperative Extension Work in Agriculture and Home Economics, State of Indiana, Purdue University and U. S. Department of Agriculture Cooperating. H. G. Diesslin, Director, West Lafayette, IN. Issued in furtherance of the Acts of May 8 and June 30, 1914. It is the policy of the Cooperative Extension Service of Purdue University that all persons shall have equal opportunity and access to its programs and facilities without regard to race, religion, color, sex or national origin.
• COOPERATIVE EXTENSION SERVICE • PURDUE UNIVERSITY • WEST LAFAYETTE, INDIANA •